Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 5, Problem 26DQP
a.
To determine
State the nature of the complaint underlying LR No.22902.
b.
To determine
State the sections of the federal securities laws are the individuals involved accused of violating.
c.
To determine
State the role of the independent auditor in the fraud and identify the possible defense (s) can the auditor’s use of the auditors is accused of violating federal securities laws in this case.
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Students have asked these similar questions
1)List and explain the General Standards.
2)What are the Auditor’s Liabilities under Common Law and Contract Law.
3)
What are the Auditor’s Liabilities under Statutory Law (SEC Acts and Other Acts of Congress).
Securities Act 1933:
Securities & Exchange Act 1934:
Foreign Corrupt Practices Act (1977):
Private Securities Litigation Reform Act (1995/1998):
Sarbanes-Oxley Act (2002):
respond to the following questions:
Section 404 of the Sarbanes-Oxley Act of 2002 includes two sections. Describe those sections.
Identify management’s four overall responsibilities with respect to internal control over fi nancialreporting that arise due to the Securities and Exchange Commission’s implementation ofthe Sarbanes-Oxley Act of 2002.
What information must be included in management’s report on internal control over fi nancialreporting in the annual report fi led with the Securities and Exchange Commission?
Describe the difference between a signifi cant defi ciency and a material weakness in internalcontrol.
Comment on the accuracy of the following statement: “Since both signifi cant defi ciencies andmaterial weaknesses must be reported to the audit committee, for practical purposes, there isno distinction between the two.”
What is meant by the “as of ” date when reporting on internal control over fi nancial reporting?
What is a compensating control?
Provide examples of…
Which non-audit service is permitted for an SEC audit client?
Preparing a point-in-time gap analysis on its technology controls compared to industry standards.
Providing a technology service that records accounting entries for the client.
Loaning staff to prepare the client’s tax return.
Loaning staff to assist with the client’s internal audit function.
Chapter 5 Solutions
Auditing and Assurance Services, Student Value Edition (16th Edition)
Ch. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Prob. 10RQ
Ch. 5 - What potential sanctions does the SEC have against...Ch. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14.1MCQCh. 5 - Prob. 14.2MCQCh. 5 - Prob. 14.3MCQCh. 5 - Prob. 15.1MCQCh. 5 - Prob. 15.2MCQCh. 5 - Prob. 15.3MCQCh. 5 - Prob. 16.1MCQCh. 5 - Prob. 16.2MCQCh. 5 - Prob. 16.3MCQCh. 5 - Prob. 17DQPCh. 5 - Prob. 18DQPCh. 5 - Prob. 19DQPCh. 5 - Prob. 20DQPCh. 5 - Prob. 21DQPCh. 5 - Prob. 22DQPCh. 5 - Prob. 23DQPCh. 5 - Under Section 11 of the Securities Act of 1933 and...Ch. 5 - Prob. 25DQPCh. 5 - Prob. 26DQPCh. 5 - Prob. 27C
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